Wednesday, July 27, 2016

"Oil Crashes To $41 Handle After Surprise Inventory Build, Production Rise"

There is just so much of the stuff, in its various states of refinement, around.
And once again the reported API figure for crude had the opposite sign from the EIA number. I mean it's one thing to be at variance but when the signs are not even pointing in the same direction (draw or build) you understand why we've stopped reporting the Tuesday evening API number.

As reprised in one of 2013's "Today in the Financial Crisis, Sept. 6, 2008--Yikes!" 5th anniversary of the Financial Crisis commemorations:

Saturday September 6, 2008 was the day the action really began and I dutifully made my way into the office very early.

The first post of the day was "Friday Fannie, Freddie Bail Out Round Up (FNM; FRE)" with an intro by Lao Tzu and Bill Goldman:

Those who know do not speak,
those who speak do not know.
-Lao Tzu
The Tao Te Ching

Nobody knows anything
-William Goldman
Adventures in the Screen Trade
We'll have more throughout the weekend. For now this is what some smart people are saying....
I'm sticking with Bill Goldman.

From ZeroHedge:
Despite last night's API-reported surge in Cushing inventories, oil futures surged into this morning's DOE data on the heels of terrible durable goods data. However, a shocking build in overall crude levels (+1.67mm vs -2mm) breaking crude's record 9-week streak of draws, sent crude prices reeling. Cushing also saw a major build as did Gasoline and production rose for the 3rd week in a row.
  • Crude -827k (-2mm exp)
  • Cushing +1.4mm (+750k exp)
  • Gasoline -420k
  • Distillates +292k
  • Crude  +1.67mm (-2mm exp)
  • Cushing +1.11mm (+750k exp)
  • Gasoline +452k
  • Distillates -780k
This week's crude build ends the 9-week drop in overall crude inventories in a row... the longest streak of declines in US history (since 1982 Bloomberg EIA data - 8 week streaks in June 2015, Jan 2008, Sept 2004, Sept 1998)...

... Crude production rose for the 3rd week in a row...

... MORE, including some of Reuters' John Kemp's charts.

WTI $41.86 down $1.06 after trading as low as $41.73: